AgdaPkt 2009-01-12 clsd and reg - Laserfiche WebLink

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Redevelopment Agency of the City of Redwood City Management's Discussion and Analysis, Continued For the fiscal year ended June 30,2008 FINANCIAL ACfIVITIES OF THE AGENCY AS A WHOLE, Continued The Agency's Fund Financial Statements At June 3D, 2008, the Agency's governmental funds reported combined fund balances of $17.1 million, which is an increase of $2.6 million from last year. This decrease resulted primarily from the growth in tax increment revenue and the decrease in expenditures related to downtown improvements. The Agency has loaned a total of $4.8 million to developers to assist them in constructing low and nloderate income housing. Interest on these loans is at below market rates. Additionally, the Agency has established First Tim"e Homebuyer programs under which low-interest rate loans in the amount of $1.4 million have been made to qualified homebuyers. These loans are explained in detail in Notes 3 and 9 to the financial statements. CAPITAL ASSETS Under GASB 34, the Agency is required to record all its capital assets, including infrastructure, at their historical cost, and to depreciate these assets over their estimated useful lives. At June 30, 2008, the Agency had $20.5 million of capital assets net of depreciation. DEBT ADMINISTRATION Each of the Agency's debt issued is discussed in detail in Note 7 to the financial statelnents. In July 1997 the Agency issued $15.43 million of Tax Allocation Refunding Bonds that bear interest at 3.8% to 5.15% and are due in 2011. The proceeds from these Bonds were used to advance refund the outstanding balance of the 1991 Redwood City Public Financing Authority Bonds - Series B. In October 2003 the Agency issued $33,997,448 of Tax Allocation Bonds that bear interest at 3.5% to 5.8% and are due in 2032: The proceeds of the bonds were used to finance various downtown improvements. At June 30, the Agency's debt comprised the two Tax Allocation Bond issues and a loan from the Redwood City School District used to finance a real property purchase, all of which are secured by property tax increment revenues. ECONOMIC OUTLOOK AND MAJOR INITIATIVES In the City's downtown area which is encompassed by the Redeveloplnent Agency, the newly constructed underground public parking garage and the related privately-developed 20 screen cinema/ retail complex with 80,000 square feet of retail space opened for business during the summer of 2006. This new retail complex currently houses Cost Plus World Market and various restaurants. In conjunction with the revitalization of downtown, the Redevelopment Agency continues to partner with the Parks, Recreation and Community Services Department to program promotional and marketing activities to support downtown and encourage first-time and reoccurring visits from both residents and the broader Peninsula Community. Additionally, the Redevelopment Agency will be soliciting proposals for the Agency-owned Bradford site to select a developer for the site to eventually provide senior housing and daycare services. 7